Vendscreen

About Vendscreen

Founded in 2011 by Paresh Patel and Glenn Butler, Vendscreen emerged from Portland, Oregon, to address the technological needs of the vending machine industry. Patel's journey is directly linked to the company's mission; at 17, he started his own vending company to finance his college education, growing it significantly and gaining deep industry experience. This firsthand knowledge of the sector's operational challenges and evolving needs was instrumental in the conception of Vendscreen.

The company developed a retrofit solution for existing vending machines, centered around an Android-based, touchscreen smart device. This device integrated multiple functionalities into a single unit, including cashless and mobile payment acceptance (supporting credit cards, NFC for Apple Pay/Google Wallet, and loyalty accounts), real-time nutritional information display, and remote data collection. The system was designed to fit into the standard payment system cutout on modern vending machines, making installation a matter of minutes. Vendscreen's offering was particularly timely, as it provided an effortless way for vending operators to comply with new federal regulations requiring calorie disclosure on machines.

Vendscreen operated on a multifaceted business model. The core of its operations was a proprietary cloud-based computing platform that connected with the touchscreen devices via a cellular module. This platform allowed vending operators to manage their machines remotely, accessing real-time point-of-sale data for analytics, dynamic route scheduling, and pre-kitting for restocking. Revenue was generated through the sale of the hardware and recurring software and service fees. For consumers, the system offered an interactive experience with features like an on-screen avatar named "Jen" to assist with purchases, the ability to filter products based on dietary needs, and instant refunds via credit codes. The platform also created a new advertising channel, enabling targeted promotions and coupons at the point of purchase, with a motion-sensing camera to track ad impressions and conversions.

The company's journey included several funding rounds, raising a total of $49.9 million, with a notable Series C round of $17.8 million in September 2013. In January 2016, the assets of Vendscreen, including its technology, intellectual property, and customer base of over 120 clients with approximately 4,200 active connections, were acquired by USA Technologies Inc. for about $5.6 million in cash.